Compare paths to paying off your mortgage in 15 years
Checking today’s rate…
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What each route costs
after $4,000 of closing costs
no closing costs, no new loan
Saved is measured against keeping your current loan, and it is net of closing costs on the refinance row. A refinance buys a lower rate and locks the higher payment in; extra payments buy the same payoff date with no closing costs and no commitment — you can stop any month.
Balance Over Time
Refinancing resets your term — compare the payoff date, not just the payment. Today’s rates →
Altgage Inc. NMLS #2447252 | 100 Cambridge St, Floor 14, Boston, MA 02114There are three ways to pay off your mortgage in 15 years: refinance into a 15-year loan (lowest rate but new closing costs), make extra principal payments on your existing 30-year (full flexibility but slightly more interest), or make a one-time lump sum plus normal payments. The right path depends on your current rate, cash position, and discipline.
15-year rates are typically 0.5–0.75% lower than 30-year rates, which is real money. The downside: closing costs, a higher required payment (no flexibility), and your old amortization clock resets. Best when your current rate is meaningfully above the 15-year rate AND you're confident in the higher payment for the long haul.
Add ~$400–$600/month (varies with balance and rate) to hit 15-year payoff without refinancing. Pros: zero closing costs, full flexibility (skip extra payments any month), and you keep your current rate if it's low. Cons: slightly more total interest than a 15-year refi would cost, and discipline is required — automate it or it won't happen.
A single large principal payment shortens the loan dramatically. $50K on a $400K loan at year 5 can cut 4–6 years off the payoff. Combine with normal payments — no recast needed unless you want to lower your minimum payment. See the Recast calculator for the math when you do want lower payments.
If your mortgage rate is meaningfully below what you could earn investing the same money (sub-4% mortgage in a 7%+ market). If you don't have a healthy emergency fund — locking money into home equity is the worst illiquidity. If your retirement accounts aren't maxed — the tax-advantaged return is usually higher than the mortgage rate.
A 15-year saves substantially more interest and typically carries a rate 0.5–0.75% lower, but the required payment is much higher and permanent. A 30-year with extra principal reaches a similar payoff date with none of the commitment — you can stop any month — at the cost of the higher rate.
Only if you’re confident about the higher payment for the full term and your current rate is meaningfully above the 15-year rate available. If either is uncertain, extra principal on your existing loan gets you to the same payoff date with no closing costs and full flexibility.